Do Mortgage Protection payments affect Income based JSA?

dwestcott

I was made redundant in Feb this year, luckily i had mortgage protection with Paymentshield which has been a God send...until now!

I have reached the 6 month Contribution based JSA mark and am unclear whether i should now apply for Income based JSA, as i think the premiums paid for mortgage cover would be seen as income. Is this true?

Also, the mortgage protection requires an ABI1 form sent in monthly. Can i still collect this form if not in receipt of JSA? I am under the impression that i can continue signing on to cover my NI contributions and still get an ABI1 form proving my job search, thus still receive my mortagage protection premiums.

So to summarise, am i right in thinking that after the initial 6 months you are not able to receive either type of JSA, income based or contribtion based at the same time as mortgage protection? Did'nt see that in the small print and so does not seem fair!!! Can anyone advise please?

nissan25

Hi there,

JSA Income Based Personal Allowance, i.e £64.30 25>, £50.95 <25 is not affected by Mortgage protection policies. This is to cover your mortgage in your present circumstances, i.e. a debt.

It will however affect any assistance you may qualify for under the mortgage interest assistance available through JSA IB.

Make a claim if you have savings under £6000 or between £6000 and £16000.

Please note if your husband / wife / partner work full time or over 24hrs per week you will have no entitlement to JSA IB.

Hope this helps

Hotcross

What does Paymentshield require if you have reached 6 months and will have no entitlement to JSA IB? This is for a policy covering me only not wife who is working.

Do I still have to sign on and send the ABI1 forms on?

Thanks

nissan25 wrote: »

Hi there,

JSA Income Based Personal Allowance, i.e £64.30 25>, £50.95 <25 is not affected by Mortgage protection policies. This is to cover your mortgage in your present circumstances, i.e. a debt.

It will however affect any assistance you may qualify for under the mortgage interest assistance available through JSA IB.

Make a claim if you have savings under £6000 or between £6000 and £16000.

Please note if your husband / wife / partner work full time or over 24hrs per week you will have no entitlement to JSA IB.

Hope this helps

Kentgent

As a reply to the previous poster. You are incorrect Sir.

I reached my 6 month period when one would transfer between contribution based and income based JSA, only to find out that the interpration of the 'legislation' (a word that keeps getting quoted to me by the DWP) is that ANY mortgage protection money that gets paid directly into my bank account, irrespective of whether it goes out again to pay my mortgage (a debt) immediately disqualifies me from claiming ANY form of JSA......I was advised that if I could get the insurance company to pay my mortgage lender direct, then this would resolve the problem and I could claim income based JSA as normal.....HOWEVER my mortgage protection insurer will NOT pay my lender direct, and insists that the money must be paid into my bank account....therefore I am stuffed for having been a good citizen and paid all my mortgage protection premiums.
I have of course appealed to the benefits agency.....so far its taken them a month and no response - when I called this morning they advised me that they have passed my papers on to the appeals department for a reconsideration which will take an undefined amount of time while they 'interpret the legislation' and then if they do not reconsider their original decision it will go to appeal which will take a' minimum of 6-8 months'!!! So WHATEVER I do, I am stuffed for at least 6-8 months, by which time of course the mortgage protection will have run out, and I will be defaulting on the mortgage....and becoming a burden on the state.....
All because someone in the benefits agency is unwilling to realise that they are actually creating the problem.......How's that for rubbing salt into the wounds? :T

tamarto

They do if the amount you recieve is more than your mortgage payments.

dmg24

Kentgent wrote: »

As a reply to the previous poster. You are incorrect Sir.

I reached my 6 month period when one would transfer between contribution based and income based JSA, only to find out that the interpration of the 'legislation' (a word that keeps getting quoted to me by the DWP) is that ANY mortgage protection money that gets paid directly into my bank account, irrespective of whether it goes out again to pay my mortgage (a debt) immediately disqualifies me from claiming ANY form of JSA......I was advised that if I could get the insurance company to pay my mortgage lender direct, then this would resolve the problem and I could claim income based JSA as normal.....HOWEVER my mortgage protection insurer will NOT pay my lender direct, and insists that the money must be paid into my bank account....therefore I am stuffed for having been a good citizen and paid all my mortgage protection premiums.
I have of course appealed to the benefits agency.....so far its taken them a month and no response - when I called this morning they advised me that they have passed my papers on to the appeals department for a reconsideration which will take an undefined amount of time while they 'interpret the legislation' and then if they do not reconsider their original decision it will go to appeal which will take a' minimum of 6-8 months'!!! So WHATEVER I do, I am stuffed for at least 6-8 months, by which time of course the mortgage protection will have run out, and I will be defaulting on the mortgage....and becoming a burden on the state.....
All because someone in the benefits agency is unwilling to realise that they are actually creating the problem.......How's that for rubbing salt into the wounds? :T

A MPP would be paid directly to the lender and would not be counted for benefit purposes. What you have described is an income protection policy, which is counted for means tested benefit purposes.

kazzah60

skcollobcat10 wrote: »

If this is true it is absolutely disgusting that they can do this to you.

I bet you ask yourself now what was the point of safeguarding your mortgage debt when you were working.

I think by what you say, anybody who has mortgage protection and are paying the really expensive insurance policy that you have paid will think again and cancel them.

I can confirm that this IS true - the same information was given to my husband when he was made redundanct in 2008

BUT what I can confirm is that you CAN claim on the mortgage protection insurance even though you are NOT in receipt of JSA
as long as you still have to sign on ( for your NI contribution) they will happily complete the appropriate forms for you to claim the insurance

Karen

dmg24

kazzah60 wrote: »

I can confirm that this IS true - the same information was given to my husband when he was made redundanct in 2008

BUT what I can confirm is that you CAN claim on the mortgage protection insurance even though you are NOT in receipt of JSA
as long as you still have to sign on ( for your NI contribution) they will happily complete the appropriate forms for you to claim the insurance

Karen

See my clarification above - traditional MPPI will not affect the personal allowance element of IB JSA, however income protection policies will. Refer to the DMG if you require further clarification.